Qumu Corporation (NASDAQ: QUMU) today reported financial results for the
fourth quarter and year ended December 31, 2016.
Fourth quarter revenue was $9.3 million, compared to $10.1 million in
the fourth quarter 2015; and net loss was $(0.3) million, or a loss of
$(0.04) per diluted share, compared to $(4.6) million, or a loss of
$(0.50) per diluted share, in the fourth quarter 2015. Fourth quarter
adjusted EBITDA (a non-GAAP measure) was income of $0.8 million,
compared to an adjusted EBITDA loss of $(3.7) million for the fourth
quarter 2015. Fourth quarter 2015 operating loss and adjusted EBITDA
included severance expense of $743,000 and a loss on a third-party
license agreement of $1.2 million.
For the full year 2016, revenue was $31.7 million, compared to $34.5
million last year; and net loss was $(11.2) million, or a loss of
$(1.23) per diluted share, compared to $(28.7) million, or a loss of
$(3.11) per diluted share, last year. For the full year 2016, adjusted
EBITDA was a loss of $(6.6) million, compared to an adjusted EBITDA loss
of $(24.5) million last year. Full year 2016 included severance expense
of $563,000. Full year 2015 included severance expense of $2.1 million,
a loss on a third-party license agreement of $1.2 million and equipment
operating lease loss of $1.0 million.
"2016 was a pivotal year for Qumu and our fourth quarter illustrates our
strong progress in several key areas. We continued to demonstrate that
we are the only vendor with a full suite of video enterprise solutions
as we gained significant ground in our transformation from a perpetual
software licensing model to a higher-value, SaaS model. We also drove
record gross margins and adjusted EBITDA and bolstered our blue-chip
customer list with several high-value enterprise wins within new Fortune
500 organizations," said Vern Hanzlik, Qumu's president and CEO.
"Additionally, we achieved nearly $20 million of expense reductions year
over year, while maintaining over a 90% customer renewal rate, a strong
customer satisfaction metric . Early adopting enterprise clients are
beginning to migrate toward cloud-based solutions, but we have also seen
continued demand for our best-in-class, behind the firewall, on-premise
video solution. During 2016, 70% of revenue came from our blue-chip
on-premise customer base and 30% came from new SaaS customers. We are in
a strong position with enterprise customers whether they seek a highly
secure on-premise solution or a more flexible SaaS solution. We are
confident that this trend will continue as we move into 2017."
Other Financial Highlights
GuidanceFor the first quarter 2017, revenue is expected to
be in the range of $7.0 million to $8.0 million. Total gross margin
percentage is expected to be in the low 60s in the first quarter. First
quarter net loss is expected to be in the range of $(3.6) million to
$(3.1) million, or $(0.39) to $(0.34) per diluted share, with weighted
average shares outstanding of approximately 9.25 million shares.
Adjusted EBITDA for the first quarter 2017 is expected to be in the
range of a loss of $(2.2) million to $(1.7) million, compared to an
adjusted EBITDA loss of $(3.0) million in the first quarter 2016.
For the full year 2017, revenue is expected to be in the range of $31.0
million to $34.0 million as the Company continues to grow its recurring
revenue base. Total gross margin percentage is expected to improve from
the low 60s early in the year to the high 60s late in the year. Net loss
is expected to be in the range of $(10.5) million to $(9.0) million, or
$(1.12) to $(0.97) per diluted share, with weighted average shares
outstanding of approximately 9.3 million shares. Adjusted EBITDA for the
full year 2017 is expected to be in the range of a loss of $(5.0)
million to $(3.5) million compared to an adjusted EBITDA loss of $(6.6)
million in fiscal 2016. The Company expects a tax benefit of $200,000 in
fiscal 2017. Additionally, the Company expects that it will be cash flow
breakeven for the second half of 2017.
Conference CallThe Company has scheduled a conference call
and webcast to review its fourth quarter 2016 results tomorrow, March 1,
2017 at 10:00 a.m. Eastern Time. The dial-in number for the conference
call is 877-456-6914 for domestic participants and 929-387-3794 for
international participants. Investors can also access a webcast of the
live conference call by linking through the investor relations section
of the Qumu website, www.qumu.com.
Webcasts will be archived on Qumu's website.
Non-GAAP InformationTo supplement the Company's condensed
consolidated financial statements presented on a GAAP basis, the Company
uses adjusted EBITDA (a non-GAAP measure), which excludes certain items
from net income (loss) (a GAAP measure). Adjusted EBITDA excludes items
related to interest income and expense, the impact of income-based
taxes, depreciation and amortization, stock-based compensation, change
in fair value of warrant liability, foreign currency gains and losses,
other non-operating income and expenses, and net income (loss) from
The Company uses both GAAP and non-GAAP measures when planning,
monitoring, and evaluating the Company's performance. The Company
believes that adjusted EBITDA is useful to investors because it provides
supplemental information that allows investors to review the Company's
results of operations from the same perspective as management and the
Company's board of directors. Non-GAAP results are presented for
supplemental informational purposes only for understanding our operating
results. The non-GAAP results should not be considered a substitute for
financial information presented in accordance with generally accepted
accounting principles, and may be different from non-GAAP measures used
by other companies.
See the attached Supplemental Financial Information for a reconciliation
of net loss, a GAAP measure, to adjusted EBITDA, a non-GAAP measure, for
the three months and year ended December 31, 2016 and 2015.
Forward-Looking StatementsThis press release contains
forward-looking statements that are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. Any
statements contained in this press release that are not statements of
historical fact may be deemed to be forward-looking statements. Without
limiting the foregoing, words such as "may," "will," "expect,"
"believe," "anticipate," or "estimate" or comparable terminology are
intended to identify forward-looking statements. Such forward-looking
statements include, for example, statements about: the Company's future
revenue and operating performance, cash balances, future product mix or
the timing of recognition of revenue, and the demand for the Company's
products or software. The statements made by the Company are based upon
management's current expectations and are subject to certain risks and
uncertainties that could cause the actual results to differ materially
from those described in the forward-looking statements. These risks and
uncertainties include the risk factors described in the Company's Annual
Report on Form 10-K for the year ended December 31, 2015 and other
factors set forth in the Company's filings with the Securities and
About QumuVideo is today's document. Qumu Corporation
(NASDAQ: QUMU) provides the tools businesses need to create, manage,
secure, deliver and measure the success of their videos. Qumu's
innovative solutions release the power in video to engage and empower
employees, partners and clients. Organizations around the world realize
the greatest possible value from video they create and publish using
Qumu. Whatever the audience size, viewer device or network
configuration, Qumu solutions are how business does video.
Additional information can be found at www.qumu.com.
QUMU CORPORATIONSupplemental Financial Information(unaudited
- in thousands)
A summary of revenue is as follows:
A reconciliation from GAAP results to adjusted EBITDA is as follows:
View source version on businesswire.com: http://www.businesswire.com/news/home/20170228006812/en/
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